Bollinger Band

Creator : John Bollinger

Default period: 20

In the Bollinger Band indicator, three lines are plotted on the chart.

1. Green line is the Upper Band
2. Red line is the Middle Band
3. Blue line is the Lower Band

Bands plotted at a standard deviation level above and below a Simple Moving Average are called Bollinger Bands.

As the distance between the bands is based on standard deviation, the bands adjust to underlying volatility of the price.

The indicator can be found in the Indicator Digger section on TradePoint & RZone. There are ready conditions in tabular format that can be used to pick stocks based on the condition of this indicator on any charting technique.

The indicator table value in TradePoint & RZone also provides you with a list of all values of this indicator for any group of stocks. This will allow you to compare the readings of this indicator across different stocks.

This indicator is available in the System Builder on RZone & TradePoint for all charting methods. Using the system builder, you can develop various strategies based on the different conditions already present in this indicator. Additionally, it can be used with other indicators or price patterns to develop effective trading strategies. For any group of stocks and market segments, you can scan and backtest stocks based on those strategies.

Click here to learn more about the Bollinger bands channel line indicator.

The indicator is applicable to all types of charting. It is calculated based on the number of columns on P&F charts, bricks on Renko charts, lines on Line-break charts, candles on Heikin-Ashi charts, and lines on Kagi charts. While the formula and reading of the indicators remain the same, they become more dynamic on these charts.